ZIDCO cushions loan debtors' burden

Published: Tuesday, January 15, 2008, 14:33 [IST]

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Aizawl, Jan 15 (UNI) The Zoram Industrial Development Corporation (ZIDCO) has come out with the ''Zidco special OTS (One Time Settlement) Scheme, 2008'' to cushion the impact of the Mautam (bamboo flowering) disaster on its loan debtors.

''Under the scheme, the ZIDCO will rebate all interest if the settlement is made before March 31, in which the debtors will have to pay only the principal loan. However, this scheme will not include the loans under the NMDFC and HUDCO,'' MLA and ZIDCO chairman Lalthlengliana said, while announcing the scheme here yesterday.

ZIDCO officials said the corporation had granted different kinds of loans in collaboration with the SIDBI, IDBI, NMDFC and HUDCO.

However, majority of the loanees had neglected repayment of their debt, leaving the corporation in great trouble, Zidco officials said, stressing on the need to educate people on recovery of the loans.

''Now, the ZIDCO is under severe pressure from the RBI and SIDBI while at the same time we are refraining from taking appropriate action against the defaulters because of the critical situation they are in following the Mautam famine,'' Mr Lalthlengliana said.

''Under the circumstances, the ZIDCO had decided to show leniency to the loan debtors. However, if the loanees still fail to clear their debts, the corporation will have no choice but to take appropriate action,'' board chairman Lalthlengliana told newspersons.

While the total amount the ZIDCO had to repay to other financial institutions was Rs 1,915.24 lakh, it had unrecovered loans amounting to Rs 5,135.8 lakh, with interest, and Rs 2,059.34 lakh without interest.

Out of the 4,222 ZIDCO loanees, only 1,527 had repaid their loans fully, ZIDCO officials said.

Besides, the ZIDCO had also given ginger loans to 6,000 families under the NMDFC, amounting to Rs 300 lakh.